Hero - Benchmark Regunations
Benchmark Regulations
Intro - Benchmark Regulation
MSCI as a Benchmark Administrator
MSCI has been committed to high standards in benchmark administration long before the EU benchmark regulation was enacted, as evidenced through our long history as a respected benchmark provider and our adoption of the IOSCO Principles for Financial Benchmarks (described below). We fully support the aims of the EU and UK benchmark regulations and have been an active contributor to the development of benchmark regulation from the outset.
Below you can find information about MSCI’s status as a regulated benchmark administrator under the UK benchmark regulation (“UK BMR”) and EU benchmark regulation (“EU BMR”).
On March 5, 2018, MSCI Limited (located and registered at Ten Bishops Square, 9th Floor, London E1 6EG, UK) was granted authorization by the UK’s Financial Conduct Authority (“FCA”) as a UK benchmark administrator. Initially, the authorization covered MSCI equity and blended indexes. On June 13, 2019, MSCI notified the FCA in relation to specific UK MSCI Private Real Estate Indexes used as regulated benchmarks under the EU BMR. On December 16, 2019, MSCI notified the FCA in relation to the MSCI Fixed Income Indexes. On December 7, 2023, MSCI notified the FCA in relation to the MSCI Digital Assets Indexes. On June 7, 2024, MSCI notified the FCA in relation to the MSCI ETF linked Indexes.
MSCI Limited is listed on the FCA Financial Services Register. The list of MSCI indexes covered by MSCI’s authorization with the FCA as a UK benchmark administrator can be found as described below.
For information on MSCI Limited’s authorization with the FCA, MSCI’s benchmark families and benchmark statements, relevant compliance statements and the indexes covered by MSCI’s authorization, please see: Information related to MSCI Limited's authorization (PDF, 186 KB). On October 5, 2023, MSCI Deutschland GmbH (located and registered at Junghofstrasse 22-26, Frankfurt am Main, Germany) was granted authorization by Germany’s Federal Financial Supervisory Authority (“BaFin”) as an EU benchmark administrator for MSCI equity, blended and fixed income benchmarks. MSCI Deutschland GmbH is listed on the ESMA Benchmark Register. For information on MSCI Deutschland GmbH authorization with BaFin, please see: Information related to MSCI Deutschland GmbH authorization.
Pursuant to Article 6.5 of the EU BMR, clients of MSCI may request a copy of the MSCI BMR Control Framework here.
European Union Benchmark Regulation (EU BMR)
- MSCI’s status under the EU benchmark regulation:
- Prior to January 1, 2021, MSCI Limited was an EU regulated benchmark administrator authorized under Article 34 of the EU BMR by the UK FCA and on the ESMA register per Article 36 of the BMR.
- As of January 1, 2021, MSCI Limited is and remains authorized as a UK benchmark administrator regulated by the UK FCA (and can be found on the FCA Financial Services Register), but is considered a “third country” UK administrator vis-a-vis the EU and does not appear on the ESMA register [for these indexes] per Article 36 of the EU BMR unless and until the EU grants the UK “equivalence” or until MSCI is granted “endorsement” or “recognition”.
- On October 5, 2023, MSCI Deutschland GmbH (located and registered at Junghofstrasse 22-26, Frankfurt am Main, Germany) was granted authorization by Germany’s Federal Financial Supervisory Authority (“BaFin”) as an EU benchmark administrator for MSCI equity, blended and fixed income indexes. MSCI Deutschland GbmH is administering the MSCI Climate-Transition Benchmarks (CTB) and Paris-Aligned Benchmarks (PAB)since January 2, 2024. MSCI Deutschland GmbH may administer additional MSCI indexes in the future and additional information will be provided in advance of doing so.
- ESMA Register
As of October 5, 2023, MSCI Deutschland GmbH is authorized as an EU benchmark administrator regulated by the Germany’s Federal Financial Supervisory Authority (“BaFin”) and thereby is in the ESMA register.
Prior to the expiration of the Brexit transition period on December 31, 2020, MSCI Limited was listed on both the FCA’s register and on ESMA’s register for benchmark administrators. Pursuant to ESMA's notice on March 9, 2021, as of the date of the expiration of the Brexit transition period, UK administrators (including MSCI Limited) were removed from the ESMA register and became third country administrators in the EU. However, during the EU BMR transitional period (as described in EU BMR Article 51) EU supervised entities can use third country benchmarks even if they are not included in the ESMA register.
The EU Commission adopted a Delegated Act on 14 July 2023 to extend this transitional period by two years until 31 December 2025. This Delegated Act was published in the Official Journal of the EU on 23 October 2023 and entered into force from 26 October 2023. As a consequence, supervised entities are able to use third country benchmarks during this extended transitional period.
This does not affect MSCI’s authorization with the UK FCA as a UK administrator, and MSCI will continue to appear on the UK Financial Services Register
As per the above, all third country benchmarks are permitted to be used in the EU until the end of the EU BMR transitional period, until December 31, 2025.
During the EU BMR transitional period, MSCI will continue to develop and execute plans in consideration of regulatory requirements and in advance of any applicable deadlines.
- Benchmark Statements
United Kingdom Benchmark Regulation (UK BMR)
- MSCI’s status under the UK benchmark regulation:
- Prior to January 1, 2021, MSCI Limited was an EU regulated benchmark administrator authorized under Article 34 of the EU BMR by the UK FCA and on the ESMA register per Article 36 of the BMR.
- As of January 1, 2021, MSCI Limited is and remains authorized as a UK benchmark administrator regulated by the UK FCA (and can be found on the FCA Financial Services Register), but is considered a “third country” UK administrator vis-a-vis the EU and does not appear on the ESMA register per Article 36 of the EU BMR unless and until the EU grants the UK “equivalence” or until MSCI is granted “endorsement” or “recognition”.
- Benchmark Statements
- MSCI equity benchmark family - benchmark statement
- MSCI blended benchmark family - benchmark statement
- MSCI fixed income benchmark family - benchmark statement
- MSCI digital assets benchmark family – benchmark statement
- MSCI ETF linked index benchmark family - benchmark statement
- MSCI property benchmark family - benchmark statement
- MSCI property fund (with published NAVs) benchmark family - benchmark statement
- Compliance Statements
- MSCI Limited has taken a limited number of exemptions for the MSCI property benchmark family, which can be found in the MSCI Real Estate BMR property benchmark family - Compliance Statement.
- Brexit
As per the above, all third country benchmarks are permitted to be used in the EU until the end of the EU BMR transitional period, until December 31, 2025.
During this time, MSCI will continue to develop and execute plans in consideration of regulatory requirements and in advance of any applicable deadlines.
ESG Disclosures
- ESG Disclosures
- The ESG disclosures for indexes are provided as per the amended EU BMR (based on the Commission Delegated Regulation (EU) 2020/1816 of July 17, 2020) and the UK BMR.
- ESG factors in the benchmark statement are available through the MSCI Index Profile Tool for all the MSCI indexes in the equity benchmark family, blended benchmark family and fixed income benchmark family.
- ESG factors in the methodology can be accessed together with the methodology documents governing a specific MSCI index for the equity benchmark family, blended benchmark family and fixed income benchmark family.
List of benchmarks
- List of Benchmarks
- The list of MSCI indexes in the equity benchmark family, blended benchmark family, digital asset benchmark family, fixed income benchmark family and ETF linked index benchmark family are eligible for use under UK BMR and EU BMR, and are available to clients on MSCI’s client support site.
- The list of MSCI Private Real Estate Indexes in the MSCI property benchmark family and the MSCI Property Fund (with published NAV) benchmark family can be found in the “MSCI Real Estate - BMR Benchmarks Methodology Specifications”.
MSCI Private Real Estate Indexes
MSCI Private Real Estate Indexes – Permissioning process for UK BMR and EU BMR regulated uses.
Because contributors to MSCI Private Real Estate Indexes may be supervised contributors and regulated directly under the UK BMR and EU BMR, MSCI requires that all UK BMR and EU BMR regulated uses of MSCI Private Real Estate Indexes are expressly permissioned by MSCI through the formal process explained below. MSCI has also restricted potential UK BMR and EU BMR regulated use to the Total Return, Income Return and Capital Growth measures as well as Index Weights for the following indexes in the UK market:
- the MSCI/AREF UK Quarterly Property Fund Index
- the MSCI UK Annual Property Index
- the MSCI UK Quarterly Property Index
- the indexes with frozen history created from the same index universes as the indexes above that a licensed client requests for a UK BMR and EU BMR regulated use (such use subject to MSCI’s permission in each instance)
To apply for permission, MSCI clients are required to download the MSCI Private Real Estate Index Application for EU BMR Regulated Use (PDF, 1.7 MB) form and send the completed form to MSCI_RealEstate_EUBMR_Use_Application@msci.com. If, after reviewing the application, MSCI approves the MSCI Private Real Estate Index for a UK BMR and EU BMR regulated use, the MSCI client will be required to sign the permission letter. MSCI will not accept, or reply to, any requests from parties that are not MSCI clients for the relevant MSCI Private Real Estate Indexes.
Use of any MSCI Private Real Assets Indexes, including any MSCI Private Real Estate Indexes, for UK BMR or EU BMR regulated uses outside this MSCI permission process is strictly prohibited.
Burgiss and RCA section - Benchmark Regulations
RCA Commercial Property Price Indexes
The RCA Commercial Property Price Indexes (RCA CPPI™) are a suite of price indexes developed and published by Real Capital Analytics, now part of MSCI. RCA CPPI measure the actual price movements for commercial properties based on exclusive transaction data using repeat-sales regression methodology. These indexes are not licensed to be used for UK BMR or EU BMR regulated uses and are not designed for compliance with IOSCO Principles for Financial Benchmarks. For further information regarding the RCA CPPI go to https://www.msci.com/www/research-report/rca-commercial-property-price/03729651564
MSCI Private Capital Indexes
MSCI Private Capital Indexes are calculated using private capital data collected from contributors in connection with private capital data products. These indexes are not licensed to be used for UK BMR or EU BMR regulated uses and are not designed for compliance with IOSCO Principles for Financial Benchmarks. For further information regarding the MSCI Private Capital Indexes go to Private Capital
MSCI Carbon Credit Price Indexes
MSCI Carbon Credit Price Indexes cover more than 30 carbon credit types, including by project type, vintage, standard, region and sustainable development goal status. These indexes are not licensed to be used for UK BMR or EU BMR regulated uses and are not designed for compliance with IOSCO Principles for Financial Benchmarks. For further information go to Carbon Credit Prices
Foxberry
Foxberry is a London-based provider of front office technology and financial indices founded in 2014 with the mission of building and delivering the best solutions possible for sustainability, analytics and index creation. Foxberry Limited is authorized and regulated by the Financial Conduct Authority and is a UK registered benchmark administrator. For further information go to www.foxberry.com.